Smart-Core Holdings (2166) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 6.6% YoY to HK$2,796.2m; gross profit increased 13.1% to HK$162.2m and profit attributable to owners rose 33.4% to HK$48.5m.

• Authorised distribution supported growth amid mixed product-line results; AI infrastructure and applications were identified as strategic expansion areas, while H2 outlook remained cautiously optimistic.

Financial highlights

• Revenue was HK$2,796.2m, up 6.6% YoY; gross profit rose 13.1% to HK$162.2m and gross margin improved to 5.8% from 5.5%.

• Profit before tax increased 22.9% to HK$55.6m; profit for the period rose 31.5% to HK$48.6m and profit attributable to owners rose 33.4% to HK$48.5m.

• Basic and diluted EPS were HK10.44 cents and HK10.38 cents, respectively, versus HK7.73 cents and HK7.72 cents.

• Operating cash flow was a HK$429.4m outflow versus a HK$13.3m inflow in H1 2024, reflecting working-capital movements, including higher receivables and inventories.

• Finance costs declined to HK$13.0m from HK$15.7m, mainly due to lower borrowing use in operations.

Outlook and guidance

• H2 outlook remained cautiously optimistic overall amid trade tensions, policy uncertainty and slower global growth; AI, cloud infrastructure and semiconductor demand were expected to support sector growth.

• WSTS forecast semiconductor sales of US$700.9bn in 2025, up 11.2% YoY, and US$760.7bn in 2026, up 8.5%; AI-related logic and memory were projected to grow over 10% in 2025.

• Segment outlook was optimistic for smart vision, communications and optical communication; cautious for displays, memory and mixed distribution, particularly smart displays.